The
unions representing striking and locked out grocery clerks filed a federal
lawsuit yesterday against Ralphs markets, adding allegations of racketeering to
claims included in a state court suit filed Friday.

Both
suits claim Ralphs urged union members to work under false names.

The
federal lawsuit was filed on behalf of two officials of the United Food and
Commercial Workers International Union as trustees of the union’s pension and
benefits funds, and includes claims under the Racketeer Influenced and Corrupt
Organizations Act, the federal law targeting organized crime and other
conspiracies.

The
plaintiffs are represented by Joseph L. Paller Jr. and Robert A. Cantore of
Gilbert & Sackman in Los Angeles.

The
suit contends Ralphs was required under the union contracts to make
contributions to the funds on behalf of union workers, though not on behalf of
replacement workers. Ralphs failed to include the union workers employed under
false names in the reporting required for the trust funds, the suit alleges.

In
submitting the falsified reports by mail the chain committed mail fraud, the
union claims, bringing itself within the ambit of RICO.

“...Ralphs
has knowingly continued to employ and/or rehired some covered employees under
false names and social security numbers, and then failed to include their real
names, social security numbers and hours worked on its monthly reports,” the
suit alleges.

The
union is asking that Ralphs be blocked from continuing the alleged practices
and that the company be required to correct allegedly falsified payroll
records. The suit in state court alleges Ralphs managers went to some
locked-out workers with whom they had good relations and offered to provide
them with false identities so that they could return to work—in some cases
using the Social Security numbers of the employees’ minor children or
relatives.

Union
officials also said the company may have coerced some workers, especially
immigrant workers, with threats that they might not get jobs unless they agreed
to cross the picket lines.

Ralphs
then sent those employees to stores other than the ones they worked at prior to
the lockout to avoid having them be recognized, the union alleges.

As
a result, Ralphs allegedly failed to provide workers with pay stubs showing
their real names and Social Security numbers, a violation of state and federal
law.

The
Los Angeles Superior Court suit also alleges that Ralphs failed to keep
accurate and complete payroll records and knowingly falsified contribution and
wage reports submitted to the Employment Development Department, California
Unemployment Fund and benefit and pension funds.

The
alleged misconduct began almost immediately after the strike began Oct. 11,
according to the state court complaint, and violated Labor Code Sec. 226(a),
which requires that employers furnish workers with accurate records of pay and
deductions. Because the violations were intentional, the workers are entitled
under Sec. 226(e) to recover either actual damages or at a minimum $50 for the
first pay period in which a violation occurred and $100 for each subsequent pay
period, up to a maximum of $4,000, the suit asserts.

Sec.
226(e) also provides for an award of attorneys fees, and the suit contends the
unions are entitled to recover $100 for the initial and $200 for subsequent
violations—also on a per employee basis—under the Labor Code Private Attorneys
General Act.

Terry
O’Neil, a spokesman for Kroger Co.’s Ralphs chain, could not be reached to
comment on the suits yesterday. On Friday O’Neil said the company had not yet
seen the state suit, but denied the charges.

“We
believe the lawsuit has little or no merit,” O’Neil said Friday. “It is against
our policy to knowingly hire anyone who uses falsified documentation.”

O’Neil
also said Ralphs has had a policy of not hiring anyone who worked for any of
the three chains at the time of the strike/lockout. Ralphs stores are staffed
by management help and temporary help, he said.

The
lawsuits are another escalation of the two-month standoff between 70,000 Southern
California grocery workers and the
companies that operate 860 Ralphs, Albertsons, Vons and Pavilions stores from San
Diego to San
Luis Obispo. A federal mediator
recessed talks between both sides Dec. 19 after little progress was made on the
key issue of health benefits. No new talks are scheduled.

The state attorney general’s office has
said it is investigating whether the chains have broken antitrust laws by
forming a financial pact to share profits during the strike.